The City of Hiawatha Issued $10 Million of Term Bonds

Multiple Choice

The City of Hiawatha issued $10 million of term bonds as of April 1, 2008.The bonds bear interest at 6%, due and payable each October 1 and April 1.Assuming the City maintains its books and records in a manner that facilitates the preparation of its fund financial statements the appropriate entity to record interest on the debt at June 30, 2011 the City's fiscal year-end is

A) Debit Expenditures $300,000; Credit Interest payable $300,000.
B) Debit Expenditures $300,000; Credit Other financing uses $300,000.
C) Debit Expenditures $300,000; Credit Due to bondholders $300,000.
D) No entry required.